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on march 5, 2013, the dow jones industrial average set a new high. the index closed at 14,253.77, which was up 125.95 that day. What was the return (in percent) of the stock market that day

Respuesta :

Answer:

0.89%

Explanation:

The computation of the return of the stock market is shown below:

As we know that

Future value = Present value × (1 + interest rate)^number of years

where,

Future value = $14,253.77

Present value = $14,253.77 - 125.95 = $14,127.82

So,

$14,253.77 = $14,127.82 × (1 + interest rate)^1

So, interest rate is

= 1.0089 - 1

= 0.89%

Parrain

Based on the Dow Jones industrial average on both days, the return of the stock market was 0.89%.

What was the return on the stock market?

This can be found as:

= New index value / Old index value - 1

Old value:
= 14,253.77 - 125.95

= 14,127.82

Return is therefore:

= 14,253.77 / 14,127.82 -

= 0.89%

Find out more on returns on stock at https://brainly.com/question/25821437.

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